Image Source: Pixabay
 

Gold (XAUUSD) is climbing steadily and pushing toward new all-time highs. Spot prices trade near record levels as safe-haven demand intensifies. Geopolitical tensions in Venezuela, Iran, and Greenland have unsettled global markets. At the same time, uncertainty over the next Federal Reserve Chair and potential rate cuts is adding to monetary risk. Central banks continue to buy gold, signaling strong long-term demand. With these drivers in place, gold’s bullish momentum remains intact.
 

Gold Rally Fueled by Global Conflicts and Dovish Fed Expectations

The recent rally in gold is primarily fueled by escalating geopolitical tensions across multiple regions. Conflicts in Venezuela and Iran have intensified, while uncertainty over U.S. ambitions in Greenland continues to stir international unease. These developments have boosted demand for traditional safe‑haven assets, pushing gold sharply higher. With global risk surging, gold’s role as a traditional hedge against uncertainty has grown stronger.

At the same time, renewed scrutiny over the Federal Reserve’s independence has heightened market uncertainty. President Trump’s effort to replace Jerome Powell has fueled expectations of a more dovish Chair. That shift could lead to lower interest rates, reducing the cost of holding gold. As a result, gold has gained further momentum, supported by the prospect of easier monetary policy.

Moreover, easing tensions between the U.S. and EU over Greenland have provided only limited relief. Trump’s decision to pause tariff threats against European nations critical of his Greenland ambitions briefly slowed safe-haven demand. However, the broader backdrop remains favorable for gold. According to ING’s Ewa Manthey, strong central bank purchases and persistent geopolitical risks continue to support gold’s bullish outlook.
 

Gold Approaches Major Resistance Inside Ascending Broadening Wedge

The gold chart below shows a powerful uptrend developing within a well-defined ascending broadening wedge. This structure, outlined by diverging trendlines, highlights expanding price swings over time. Since April 2025, gold has steadily climbed within this wedge, forming higher highs and higher lows with each leg. The rising lower boundary has provided consistent support, confirming strong buying interest during each consolidation phase.
 

(Click on image to enlarge)

Over the past year, gold has approached the upper boundary of this broadening wedge several times. Each encounter led to a brief pullback, followed by renewed strength. These repeated tests confirm the reliability of the resistance zone. As of January 2026, gold is once again pressing against the upper boundary near the $4,950–$4,970 range. A clean breakout above this level would represent a key technical development and could open the door to a more aggressive advance.

Current momentum indicates that gold may soon attempt a breakout from this broadening structure. Volume and trend strength remain elevated, with no clear signs of fatigue. A successful breakout would strengthen the broader bullish case and could trigger renewed buying interest. Conversely, a rejection at this level might lead to a short-term pullback toward intermediate support, offering a potential entry point for long-term positioning.
 

Gold Outlook: Bullish Momentum Holds as Breakout Risk Builds

Gold remains in a strong uptrend as global risks and policy uncertainty continue to drive demand. Prices have hit record levels on persistent geopolitical tensions and expectations of easier monetary policy. Central bank buying adds a firm long-term foundation to the rally. Technical patterns show gold testing key resistance near historic highs. If the metal breaks above this range, further gains could follow.

More By This Author:

Gold Climbs Toward Fresh Record Highs Amid Geopolitical Risk And Economic Instability
Gold Surges On Rising US-Europe Trade Conflict And Geopolitical Tensions
Gold Faces Pressure From Hot Jobless Claims And Hawkish Fed Signals